You and several classmates are studying for the next accounting examination. They ask you to answer the following questions: 1.If cash is borrowed on a $70,000, 9-month, 10% note on July 1, how much interest expense would be incurred by December 31? 2.The cash register total including sales taxes is $42,000, and the sales tax rate is 5%. What is the sales taxes payable? 3.If $60,000 is collected in advance on November 1 for 6-month magazine subscriptions, what amount of subscription revenue should be recognized on December 31?

You and several classmates are studying for the next accounting examination. They ask you to answer the following questions: 1.If cash is borrowed on a $70,000, 9-month, 10% note on July 1, how much interest expense would be incurred by December 31? 2.The cash register total including sales taxes is $42,000, and the sales tax rate is 5%. What is the sales taxes payable? 3.If $60,000 is collected in advance on November 1 for 6-month magazine subscriptions, what amount of subscription revenue should be recognized on December 31?

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Description: You and several classmates are studying for the next accounting examination. They ask you to answer the following questions: 1.If cash is borrowed on a $70,000, 9-month, 10% note on July 1, how much interest expense would be incurred by December 31?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter3: Income Sources

Section: Chapter Questions

Problem 79P

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